Archive for gold price history

Gold futures surged higher on Friday with the December Comex contract ending the session and week at $1687.60, it’s highest level for over five months. Friday’s surge in the price of gold was largely triggered by weakness in the US dollar, which sold off during the trading session following the statement by FED chairman Ben Bernanke in which he hinted that the Federal Reserve were ‘ready to pull the trigger’ for a further round of quantitative easing. With this much vaunted stimulus for the US economy now virtually guaranteed, this will no doubt provide the catalyst for further gains in the gold price, with a consequent weakening in the US dollar as a result.

From a technical perspective the recent breakout on the daily gold chart gave a clear signal of the bullish sentiment, following the sustained period of sideways congestion which saw the precious metal trade in a narrow range throughout the summer. The breakout finally arrived on the 21st August, finally breaking and holding above the $1640 per ounce level, and with this strong platform now in place, gold looks set to build a sustained bullish trend over the next few months.

Hawkeye delivered a conservative Roadkill signal on the 24th August, as bullish volume on both the one day and three day charts, coupled with a bright green Heatmap and bullish trend on the three day chart, all combined to deliver an entry to the market. The only minor point to note is that selling volume entered the market on Thursday, followed by no demand volume on Friday, but this was almost certainly due to gold traders squaring their positions ahead of the three day weekend coupled with month end.

With the initial breakout now complete we can expect to see further bullish sentiment for the metal over the next few weeks, with an initial test of the resistance now in place at the $1720 per ounce level, which extends to $1760 per ounce. A breach of this level, should then see gold price move on to test the high of mid February at the psychological $1800 per ounce in due course.

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Since our last look at the spot gold price on 26th January when many so “experts” were predicting an imminent price collapse the metal appears to have regained its mojo and is trading at time of writing at $1402 per ounce and will soon be looking to re-test the $1420 resistance area in due course. You can find a more detailed technical analysis for both gold and silver on my annacoulling personal blog, where you will also find analysis for both the forex and equity markets. Happy trading!

The short term bearish picture for the spot gold price continued this week as the precious metal ends the year on a muted note following several months of sustained gains as it consolidated in the $1375 to $1425 per ounce region. Gold trading this week has been characterised by the metal trading below the shorter term moving averages but finding support from the 40 day moving average immediately below and indeed this has been a feature of both yesterday’s and today’s trading. However, one technical signal that cannot be ignored is the crossing of the 9 day moving average below the 14 day moving average which is giving us a bear cross signal as a result and which may indeed see the price of gold slide further in thin volumes next week as we run up to Christmas. Despite this short term bearishness on the daily gold chart, the longer term picture remains firmly bullish and indeed Goldman Sach’s forecast for gold aligns with my own, which is that we can expect to see gold prices continue firmly higher next year towards an eventual target of around $1647 per ounce. In fact Goldman’s forecast is for $1700 per ounce by 2012.

The key levels on the daily spot gold chart are firmly established at $1325, $1350 and the current price level of the 40 day moving average at $1374, all of which may come into play in the next few weeks as we build towards a breakout beyond the all time high of $1430.94 achieved early in December.

A strong performance for spot gold yesterday which closed the gold trading session as a wide spread up candle which finally broke out from the recent sideways consolidation of the past few weeks. In addition to injecting some much needed momentum into the gold chart, the close at $1383.95 per ounce also took us well above potential resistance at the $1381 level and, as such, this should now provide a solid platform of support for a continuation of the move higher and a return to the longer term upwards trend. The break to the upside came as no great surprise given the series of higher lows over the preceding two weeks which, as always, give a strong signal that any break from a sideways consolidation is likely to be to the upside. The positive momentum has spilled over into this morning’s early trading with gold trading, at time of writing, at $1389.45 per ounce, having attempted to breach the $1400 per ounce price level once more. The 9 day moving average has crossed above the 14 day giving us a further bullish signal and with the 40 day average providing an excellent platform in the medium term we should now expect to see gold climb higher towards our initial target of the $1424 high of early November.

Spot gold prices continued to consolidate during much of last week with Friday’s gold trading session ending on a mildly negative tone as traders closed positions ahead of the weekend. However, despite ongoing worries this has failed to convert into a more positive tone for spot gold which is odd given the nervousness of the markets in general and as such we can only be guided by the technical picture. Friday’s close held above both the 9 and 40 day averages and marginally below the 14 day moving average, and this price action has continued in today’s gold trading session as the price moves between $1350 to the downside and $1375 to the upside. As we now begin to trade into the year end when thin markets will be the order of the day, expect to see further sideways consolidation punctuated with some erratic and volatile price moves as traders square away their end of year positions. Moving forward into 2011 the longer term picture for the precious metal remains firmly bullish and provided we see a break and hold above the $1380 price handle then this should provide a solid platform once again, which coupled with all four moving averages, will help to propel spot gold back above $1400 per ounce once again.